Bank of India share price target

Stronger-than-expected trading gains of INR7.4b (33% of PPoP) led to a 24% beat in other income. c) Loan growth remained muted at 0%/0% QoQ/YoY; however, retail loans grew 16.9% YoY. Slippages declined sharply to INR21.4b (2.4% slippage ratio annualized) from INR40.4b in 1Q, while recoveries and up-gradations were muted at INR10.7b (v/ INR27.4b in the previous quarter), despite 1Q being the seasonally strongest quarter for recoveries. However, high write-offs of INR27.9b led to sequentially lower absolute GNPLs/NNPLs. OSRL book was almost flat at...

NII increased to Rs. 3468.58 Cr in Q4FY17 compared to Rs. 2862.61 Cr in Q3FY17.

NII increased to Rs. 2862.61 Cr in Q3FY17 compared to Rs. 2719.74 Cr in Q2FY17. NII grew by 5.71% ( Rs. 154.57 Cr ) when compared with the same period last year.

High slippage due to BoI's conservative approach on recognising NPAs, despite most loansbeingunderconsortiumlendingarrangements. Net slippage amount (gross slippage recovery/upgrades) has been falling and the...

Bank of India (BoI) reported another shocking performance as asset quality deteriorated sharply along with a loss of Rs 11.3 bn for Q2FY16 led by a sharp increase in provision expenses. Advances reported a decline on a YoY and QoQ basis, though NIMs increased by 17 bps QoQ to 2.29% leading to 3.7% QoQ growth (flat YoY) in NII. GNPA/ NNPA increased by 75/ 20 bps QoQ to 7.6%/ 4.3% respectively as asset quality deteriorated for the 7th quarter in a row.

BOI's Q1FY16 profit came in at Rs 1.3bn (83% yoy) significantly below our estimate of Rs 3.5bnledbyhigherNPAprovisions.Despiteweakcreditgrowthofjust2%yoy,NIIgrowth continuedtoremainweakat8.4%yoytoRs2.9bn(inlinewithourexpectation)duetoweak...

Bank of India (BoI) reported another shocker as the asset quality deteriorated sharply as well as reported weak earnings growth inspite of deferring Rs 7.4 bn of provision expenses. Earnings declined by 84% YoY to Rs 1.3 bn vs an estimated profit of Rs 3 bn, due to slower growth in NII, lower non interest income and higher provision expenses. Advances growth was lower at 2.1% YoY (-4.5% QoQ) whereas NIMs remained flat. GNPA/ NNPA increased by 141/ 75 bps QoQ to 6.8%/ 4.11% respectively.

BOIs aggressive growth strategy during a challenging macro environment (FY14-1HFY15) is largely the reason for the dismal asset quality performance, which eventually led to BOI reporting a loss in 4QFY15.

BOI once again disappointed with elevated gross stressed asset additions of Rs 41bn, ann. 4.1%. Both core and net earnings were far below estimates led by (1) sharp NIM decline (2) jump in staff cost (3) muted core fee income and (4) elevated credit cost. Loan growth continued to be higher than the industry avg. despite its weak capital position.

BUY |Target Price: Rs. 245 | Upside: 34% Investment Summary Ajcon's view At CMP, the stock is available at attractive valuation of P/BV: 0.49x (FY13 Book value) which we feel is undervalued considering Bank's good performance in all fronts despite stressful economic conditions and peer PSU banks reporting dismal numbers with higher P/BV ratio. The bank scrip tanked 4.55 percent to Rs 183.50 on announcement of Q1FY14 result on the BSE, whose 30-share benchmark Sensex ended the session with 0.29 percent losses. The bank is not affected much on the liquidity and the costs front as a result of the recent RBI moves to tighten liquidity, conceding that treasury operations can face some...